A Decrease in ________ Leads to an Equal ________ in the Monetary

question 37

Multiple Choice

A decrease in ________ leads to an equal ________ in the monetary base in the short run.

• A) float; increase
• B) float; decrease
• C) deposits at the Bank; decrease
• D) advances to banks; increase

Describe the relationship between distribution shape and the location of the mean in a histogram.

Compute and analyze the mode in a given data set.

Understand the concept of modes in uniquely valued data sets.

Calculate and interpret the geometric mean in the context of time series data.

---

Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.

Arbitrage Pricing Model

A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.

Characteristic Line

In finance, this is a line generated in a statistical plot to describe how the returns of a security relate to the returns of the overall market, used in the Capital Asset Pricing Model (CAPM).